Eastside Republican Review
A Publication of the Eastside Republican Club
P. O. Box 361025 Grosse Pointe Farms, Michigan 48236 (313) 886-3675
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September 2007 
THE CHAIRMAN'S MESSAGE
Julie Corbett, Chair ERC
September brings the close to a magnificent summer in Michigan and the beginning of school and other familiar schedules and routines including the monthly ERC Forums. President of the Mackinac Center, Larry Reed will be the speaker for the forum on September 18, 2007. The Mackinac Center for Public Policy is a Midland-based research and educational institution. On October 16, 2007, Scott Romney will speak and State Representative Edward J. Gaffney will give a legislative wrap up November 20, 2007.
 On the local scene, there are mayoral and city council elections and the Grosse Pointe School Board. In the Park, Mayor Palmer T. Heenan is running unopposed as are council members Gregory P. Theokas, Robert W. Denner, and Dan E. Clark. The City council members up for re-election are Richard Clarke, John Stempfle, and G. John Stevens. Mayor Dale Scrace is also up for re-election, but all candidates will not be known until the filing deadline on September 24, 2007. Judge Russell Ethridge is also running for re-election. The Farms has three council members running for re-election, Doug Roby, Therese Joseph, and Joseph T. Leonard. Greg Bourgyne is also running for the Farms council. Mayor James C. Farquhar is running for re-election unopposed. In the Woods, council members Lisa Pinkos Howle, Dona DeSantis-Reynolds, and Darryl A. Spicher are up for re-election. Filing deadline is September 10th. The Village of Grosse Pointe Shores has three trustees running for re-election in 2007. Brian J. Hunt, Frederick K. Minturn and Glenn W. Peters are running unopposed, as is James M. Cooper, Village President. Village City Clerk, Victoria Boyce is running unopposed. In Harper Woods, Mayor Kenneth Poynter, council members Cheryl Costantino, Hugh Marshall and Michael Monaghan are all running unopposed.
The Grosse Pointe School Board has two trustees, Fred Minturn (treasurer), and Charles Sabino, whose terms expire this year. Minturn and Sabino have filed. John Steininger, a new candidate, will also run for the school board election.
The ERC will be planning candidate forums to enable members to meet the candidates and ask questions.
This presidential election for 2008 will keep all interested to see who will make it to the finish line. Place your two dollar bets - win, place, or show for the winner of this horse race! Take your pick -- former New York Mayor, Rudy Giuliani, Senator John McCain, former Massachusetts Governor, Mitt Romney, and former Arkansas Governor Mike Huckabee, or Duncan Hunter of California, Senator Sam Brownback of Kansas, Representative Ron Paul of Texas, former Tennessee senator Fred Thompson, and former Speaker Newt Gingrich. Regrettably there are no Republican fillies or mares to take on Hillary. All of the Republican wannabes will be speaking at the Mackinac Republican Leadership Conference later this month.
The Mackinac Republican Leadership Conference has been held for over 50 years so that Michigan grassroots activists, party leaders, legislators, and statewide elected officials can meet on historic Mackinac Island. This year's conference will take place September 21-23, 2007, at the Grand Hotel. The theme, “Relying on our Roots,” conveys a strong message of grassroots support.
If you are beginning to think that this is an unusual political season, let me assure you that it is not. Doris Kearns Goodwin in her book, Team of Rivals, chronicles Abraham Lincoln's rise to the presidency detailing the political complexity for the 1860 Republican presidential nomination. New York senator William H. Seward, Ohio governor Salmon Pl Chase, and Missouri's Edward Bates all challenged Lincoln in dramatic maneuvers. I have enjoyed this book and anyone interested in politics should also find it compelling.
Finally, the ERC requests that you provide your email address so that the newsletters and meeting reminders and other pertinent information can be sent electronically. This will save money for postage fees and printing. The ERC promises to protect your privacy and the email addresses will not be shared with any other group. Please add your email address in the envelope when you pay your ERC dues or email jhacklem@eastside-republican-club.org.
LAWRENCE REED OF MACKINAC CENTER
TO ADDRESS SEPTEMBER 18 ERC FORUM
Lawrence W. Reed of the Mackinac Center for Public Policy will kick off the Eastside Republican Club fall season Tuesday, September 18, by presenting the case for “Principled Leadership for Fixing Michigan.”
Dr. Julie Corbett, ERC chairman, said, “We invite anyone interested in good government to attend this forum.” The ERC's September forum will be held at the Grosse Pointe War Memorial in Grosse Pointe Farms.
Reed is president of the Mackinac Center for Public Policy, a research and educational institute. The Center's mission is to equip Michigan citizens and other decision-makers to better evaluate Michigan public policy options, and to do so from a free market perspective.
Reed holds a B.A. in economics from Grove City College and an M.A. in history from Slippery Rock State University, both in Pennsylvania. He taught economics at Midland's Northwood University from 1977 to 1984, and chaired the department of economics from 1982 to 1984. He designed the university's unique dual major in economics and business management and founded its annual, highly acclaimed "Freedom Seminar."
In 1982, he was a candidate for the U. S. House of Representatives from Michigan's 4th district. He moved to Boise, Idaho in 1984 to direct a policy institute before returning to Michigan to head the Mackinac Center.
Under his leadership, the Mackinac Center for Public Policy has emerged as the largest and one of the most effective of over 40 state-based "free market" think tanks in America. In 1994, he was elected to a one-year term as president of the State Policy Network, a national organization whose membership consists of those state-based groups, and has continued to serve on its board.
Over the past 20 years, he has authored more than 800 newspaper columns and articles, 200 radio commentaries, dozens of magazine and journal articles in the U. S. and abroad, as well as five books.
Since 1978, he has delivered more than 1,000 speeches in 40 states and 15 foreign countries, including one at Peoples University in Beijing, China.
In 1993, Michigan Gov. John Engler appointed Reed to the Headlee Amendment Blue Ribbon Commission. In 1994, he was named to a task force of the Secchia Commission on Total Quality Government, charged by Gov. Engler with streamlining state government.
STATE LEGISLATIVE UPDATE 
THE NEW MICHIGAN BUSINESS TAX
The highlight of the legislative session so far has been the approval of a replacement for the Single Business Tax (SBT). The SBT was repealed because it did not encourage employers to hire new employees. Also, the SBT required many businesses to pay taxes even if they did not make a profit.
New Business Tax
“SEVENTY PERCENT OF MICHIGAN BUSINESSES WILL PAY LESS TAXES…”
 $12 Million reduction for Commercial property
 $24 Million reduction for Industrial property.
The Basics
 The Michigan Business Tax works by taxing a combination of profits and margins (margins are gross receipts minus the cost of goods and equipment).
 Two-thirds of the business tax is used on a 0.8 percent tax on margins, and one-third is based on a 4.95 percent tax on profits.
 Small businesses have the option of paying a 1.8 percent tax on their adjusted income.
 The MBT cuts personal property taxes by 65 percent for manufacturers and 23 percent for commercial businesses.
 The MBT includes help for entrepreneurs and growing businesses and also offers tax credits for research and development, incentives to invest in infrastructure, and incentives to hire Michigan workers.
 The insurance industry will pay higher taxes as rates on premiums rise from 1 percent to 1.25 percent. Banks will also see a tax increase.
The Good News
 The MBT provides significant tax relief for small businesses and more companies will qualify for small-business relief.
 The plan reduces personal property taxes helping Michigan's struggling manufacturers, and the cuts will not impact local government revenue.
 By offering tax credits for compensation paid to Michigan employees, the MBT provides incentives for companies to create jobs in Michigan.
 The plan includes a three-year cap on revenues so that if the government collects more than is projected, half will get refunded to taxpayers and half will go into the state's rainy day fund.
Principal Residence Exemption To Be Expanded
Rep. Gaffney's legislation, House Bill 4215, to allow an additional principal residence exemption for a maximum of two properties, was recently passed out of the State House of Representatives on a vote of 93 to 11. Currently, an individual can only claim one principal residence for this exemption.
This bill seeks to provide some relief to taxpayers who are unable to sell homes, due to the poor real estate market, by allowing them a second exemption for up to three years. The exemption could be applied to property that is not occupied, is for sale or lease (but not being leased), and is not used for any business or commercial purpose. The bill is now awaiting a hearing in the Senate Finance Committee. This legislation complements related bills that have been introduced that address the “pop-up tax” that occurs whenever the ownership of a property is transferred, due to the provisions of Proposal A.
House Bill 4440 would place a moratorium on the “pop-up tax” for principal residences that are sold during the period beginning March 1, 2007 through September 1, 2008. This bill has also been referred to the Senate Finance Committee after passing in the House.
The College Family Bill of Rights
Attending college is more affordable under this new plan. To combat double-digit tuition hikes and skyrocketing fees at Michigan's public colleges and universities, House Republicans are proposing legislation to make attending college more affordable. The Michigan College Family Bill of Rights is a multi-prong plan to lower the cost of pursuing higher education. The centerpiece involves encouraging administrators to keep tuition rate increases low by tying state funding levels to tuition restraint. The plan would also expose hidden charges and fees that add to a student's bottom line. “College education is essential to compete in today's global economy,” said Rep. Gaffney.
He said, “But rising costs are putting higher education out of reach for many Michigan families. The plan put forth by my Republican colleagues ensures students the right to an affordable education.” In addition to keeping rates low, the plan would establish a fund to help students pay their tuition bills if a parent is laid off in the middle of the school year. It would also allow parents to directly deposit their income tax refund into a college savings plan or pre-paid tuition program.
If you have any questions or concerns you wish to share with Representative Gaffney you can contact the office by mail at P.O. Box 30014 Lansing, MI 48909, by email at edwardgaffney@house.mi.gov or by phone toll free at 1-888-254 -LAW1 (5291).
JOURNALIST NOLAN FINLEY ADDRESSES LEADERSHIP
Nolan Finley, editorial page editor of The Detroit News, offered his perspective on Michigan and its political leadership, at the ERC Forum on June 19, 2007.
Finley cited a recent Detroit News poll indicating 76% of voters surveyed believe Michigan is on the wrong track. It also showed that 70% believe the State's economy has worsened in the past year. He agreed with that analysis noting, “If this is not Michigan's worst fiscal crisis, it is one of the worst.”
“While it can be overcome,” he said, “We must address our State leadership deficit if we hope to cope with it.” Referring to Michigan's current chief executive, he pulled no punches saying, “This is probably the worst Governor since World War II.”
Michigan Economy Ranks Last
Finley reported that Michigan's economic activity, or gross domestic product as measured by the U.S. Department of Commerce, is now only 89% of the national average. The most recent data show 49 other states experienced economic growth last year, while Michigan with its GDP decline ranked the Wolverine State 50th. He said, "The best projection is for a recovery by 2011 to 2018--but it is not inevitable.”
“I'm not sure the people of Michigan realize they are all alone in this,” Finley said. The State is alone in losing jobs and household income. If the trend continues, he said, “We will be below the household income of Alabama!”
Then Finley added, “We will have this governor for three and one-half more years!”
Time to Send Bold Message
First, Finley said, “Michigan must send a big signal to the rest of the world that things have changed.” But, he observed, big labor still drives many political decisions in Michigan. Consequently, he called for voters to break organized labor's grip. He called for placing a “Right to Work” question on the Michigan ballot.
He said passage of such a measure would be an important signal, although of little practical impact. Even though minor, he said it still would provide a significant signal to new businesses and would get the attention of the rest of country.
Finley pointed out that according to a recent survey, two-thirds of businesses find the Michigan business environment hostile. “If we had a better business climate,” he said, “it wouldn't require as much effort to get business to come here.”
Because entrepreneurs are free to go any place they deem advantageous, Finley said, “They need a reason to come to Michigan.” Finely said that for our economy to grow and succeed and prosper, “We need to remove the hostile environment, and establish a friendly business environment.”
Full-scale Review Needed
Next, Finley called for an audit of State government. He suggested it examine every service offered to see what can be done better or more efficiently. This, he said, should precede any consideration of increased taxes.
As to recent claims of trimming Michigan's budget, he said there have been no true budget cuts. Instead, he pointed to one-time gimmicks and accounting shifts. Rather than reforms and budget cuts, Finley said, “We have been passing the problem forward because leadership is not serious and has been satisfied to tinker around the edges.”
Finley reported that expenditures labeled “education” grab an increasing chunk of the State budget, yet taxpayers are buried by legacy costs. He argues for reform in the area of teacher health care coverage saying, “If Michigan public school teacher health coverage was the same as other public employees, the savings would amount to $4,100 per teacher for a combined savings of $220 million per year.”
He noted that despite the high expenditure for public education, Michigan public schools experience a 23% dropout rate. He added, “Detroit sends more of its students to welfare than to college.”
According to Finley, a further value of an audit would be to ask, “Are all 52,000 State employees essential to run the State?” He said there is no strategic overview as to where employees should be assigned for the greatest benefit of the taxpayer.
Finley said these steps are critical to correct over spending. He noted, “Michigan spends more than any other state in Midwest.” As one example, he cited Michigan's taxpayer-funded Medicaid system that provides more subsidized services than most other states.
The editor fully supports use of the Michigan tax code to encourage a new start for Michigan. However, he said, State leaders are misguided when they search for “under-taxed” sectors to target with tax increases. 
Finley said, “They were the segments growing!” Instead, our leaders see it as an opportunity to squeeze more money from these businesses. “They are talking about revenue before they have studied cost saving opportunities through reform,” he said.
He warned that the Governor is considering a graduated income tax and a renewed estate tax. “She doesn't understand that one advantage we have is our flat income tax,” he said. If these tax hikes go into effect, he said, “Tennessee and Florida will look real good to retirees.”
Finley believes Michigan will continue to suffer as long as it continues to punish success. He said, “The Governor and her husband, the 'assistant governor,' talk about the evils of profits which sounds like a view from the 1960's.”
Build an Experienced State Legislature
Finley told the ERC that one way to encourage stronger, more qualified leadership would be to repeal term limits. He said this would allow more seasoned lawmakers a chance to serve, instead of what he called “pogo stick politics” where every elected member of the State legislature is constantly looking for his next job.
He supports a statewide ballot proposal removing term limits. He said such a proposal might also include a shift to a part time legislature, as is already the case with 39 other states. He said, “This would require the legislature to focus on their core duties, and not spend full time making mischief.”
CONGRESSMAN THAD MCCOTTER
HEADLINES 2007 ERC-PAC DINNER
In a wide-ranging discussion of national issues, U.S. Congressman Thaddeus G. McCotter of Livonia spoke May 30 to the annual Eastside Republican Club P.A.C. dinner at Sindbad's in Detroit.
He addressed the global war on terror, immigration, and tax policies. McCotter's grasp of national and international issues was evident as he answered the far-ranging questions posed by his audience. Lita M. McKeehan, chairman of the Eastside Republican Club Political Action Committee, said that proceeds from the P.A.C. event would be used to support local GOP candidates.
In addition to McKeehan, P.A.C. committee members include John Stempfle, Ed Joseph, Tom McCleary, Linda Solterisch, Carol Hackleman, Jeffrey Neilson, and Alice Baetz. The ERC chair, Julie Corbett, serves as ex officio member of the group.
Congressman McCotter represents the 11th District of Michigan, a suburban district of Detroit that includes portions of Western Oakland and Western Wayne Counties. As a 30-year resident of Livonia, McCotter has represented portions of the 11th District for over a decade, first as a Schoolcraft Community College trustee, a Wayne County commissioner, a Michigan State senator, and now as the District's U.S. Representative.
ERC DUES STATUS
Thanks to the ninety percent of our members who have paid their 2007 dues. To our other friends, we would appreciate your consideration at this time!
If there is a dues envelope in this issue of the ERC Review, our records indicate you have not paid your 2007 dues.
Dues are still only $25 per year per family. Dues cover the costs of mailing meeting notices, War Memorial Rental, ERC Review Newsletter, and the Web Site.
Since our mailing costs are covered by dues, we plan to review our mailing list and eliminate the names of people who have not paid their dues in over a year.
Thank you for your consideration in this matter.
JIM NICHOLSON
ADDRESSES APRIL ERC FORUM
“Correcting problems in Detroit has to start with leadership,” said James B. Nicholson, CEO of PVS Chemicals in Detroit and 1996 Republican candidate for U.S. Senate, in remarks April 17 to the ERC Forum at the Grosse Pointe War Memorial.
Praising Detroit Mayor Kwame Kilpatrick, Nicholson said, "He is showing signs of leadership we haven't seen from our Governor!"
The Republican leader explained, "He is making progress in working out Detroit's budget problems." 
Nicholson said of Detroit, “There is a lot of negative noise--too much bad news, instead of good news.”
Joking with his audience, Nicholson said, “In thinking about tonight's remarks, I thought back to the last time I spoke to the ERC. I made such a rousing speech in 1996, that 11 years later I was finally asked back!”
The former candidate for U.S. Senate reflected, “What I learned in running for office in 1996 was that every move, every action, was amplified.” As a result, he said, “I have more respect for all who are willing to run for office.”
In a campaign, Nicholson explained, “Two things happen: first the campaign is not about issues, but sound bites.” He said the proof is that all of his detailed policy papers are in the library, but nobody bothers to check them out.”
Secondly, he said, “Immediately after winning the election, the victor asks, 'What now?' We'd better make sure our elected officials are either experienced or are quick learners!”
Detroit: Moving Forward
“In the past, Detroit has been successful exporting automobiles and importing money hat left us with a culture of entitlement.” “Economics is cruel, but it is efficient,” Nicholson said and also said he was happy to report that Detroit's Mayor is starting to establish the right environment to bring renaissance to Detroit.
Nicholson said, “He is focused on balancing the budget, and although not perfect, he's making progress in working out the necessary cuts with his board of directors, the Detroit City Council.”
But Nicholson was also realistic in his appraisal of tough issues, including crime. He called crime “the cancer of the city that generates worldwide headlines.”
To attack the security issue, he said that over the next 12 months the Mayor is adding 100 new police officers, and will replace an additional 100 who will be retiring. As a result, police response time will be improved.
The second tough issue, he said, was public education. Nicholson said that young professionals are less concerned with this, but families with children are less than excited about Detroit public schools. Nicholson was quick to note, however, that schools are not under Mayor's purview.
Nicholson noted that other deterrents to growth were the Detroit City income tax, high property taxes, and a low level of satisfaction with city services. He said, “These issues cause people to vote with their feet.”
Michigan Leadership
Turning to the economic troubles facing the State of Michigan, Nicholson said, “We have a one-state recession.”
He called for Governor Granholm to demonstrate executive leadership saying, “There are opportunities for trimming the State budget, and the number of non-essential State employees.”
Nicholson said the State of Michigan could find budget relief by reducing the number of “businesses” operated by the State. He noted that government officials do not make good entrepreneurs.
He said one key to successful leadership is the hiring of “real talent.”
The civic and business leader said he had this message for the Governor, “Start with your base--the labor lobby.”
As another example of efficiency, he said millions would be saved each year if the State merely used competitive bidding to award teacher health care contracts.
VOTING IS A PRIVILEGE
VOTE ON NOVEMBER 6
Council Members and School Board Members are important to our future.
Please vote on November 6. 
13TH DISTRICT NEWS 
Ed Joseph, Chairman
Greetings to all 13th District Committee members. We will kick off our fall schedule with our first meeting on Monday, September 10, 2007, at 6:30 p.m. Our featured speaker will be Chuck Yob, Michigan GOP National Committeeman. Chuck also serves as Vice Chair of the Republican National Committee for the Midwest Region. Chuck will bring us up-to-date on news and developments throughout the GOP in Michigan and in Washington. He will also be available to take questions. Refreshments will be served prior to the meeting. All are welcome to join us for an exciting and informative evening.
Beginning with our meeting on September 10th, we are instituting a change of venue for our meeting location. The 13th District Executive Committee will meet at the Detroit YWCA, located at 1411 E. Jefferson Avenue in Detroit. The YWCA is a few blocks East of Downtown Detroit. Meetings will continue to have a 6:30 start time. We plan to use the YWCA location for our fall meetings, September through November. Our meeting location will then be reviewed. Meetings will continue to be scheduled on the second Monday of the month, except for June, July, August and December.
At our September meeting, we will discuss the presidential primary, building our base of precinct delegates, community outreach and upcoming activities.
You can get updated information regarding our District by clicking on the following website, www.eastside-republican-club.org, and clicking the link for District News at the top of the page. Thanks to Jay Hackleman, our Webmaster, for an outstanding job in obtaining and making available the latest information on our website.
I hope everyone had a safe and enjoyable summer. I look forward to seeing you at the YWCA on September 10th.
PRESIDENTIAL PRIMARY SET 
After a year of negotiations between the Michigan Republican Party and the Michigan Democratic Party, an agreement was made on a Statewide primary for both parties. 
On Tuesday, September 5, Governor Granholm signed the Presidential primary bill passed by the Michigan Legislature for a joint primary on January 15, 2008.
Michigan will be one of the earliest primaries in the country and will make Michigan a big player in the selection of presidential candidates.
This type of primary opens the process to all voters of Michigan and is more open than caucuses, conventions, and closed party primaries.
Voters will go to their polling places and mark whether they want a Republican or a Democratic ballot.
The ballot selection does not sign them up to a Political Party and will not be recorded by the Secretary of State as a party affiliation. The information will go to the political parties, which could use it for fundraising lots and/or other party activities.
More details will be available in our January ERC REVIEW.
LOCAL COLLEGE REPUBLICAN
NAMED WHITE HOUSE INTERN
Dawn Malaga of Harper Woods has been accepted into the White House internship program for fall 2007. 
Malaga, who describes herself as “a fierce college Republican,” first acted on her interest in politics through the Eastside Republican Club as a volunteer at Detroit's Eastside Republican office.
“My passion for the conservative stance is both obvious and active,” she said. 
Malaga worked for the Bush/Cheney '04 campaign headquarters in Southfield, and also assisted Eastsider's Cheryl Costantino, Cynthia Cassell, and Ed Gaffney in their campaigns. In addition, she assisted with the DeVos campaign.
Because the four-month internship is unpaid, Malaga is seeking support from local Republicans to help underwrite her expenses. Malaga can be contacted at dmalag01@baker.edu
Malaga is currently enrolled at Baker College in Clinton Township, and plans to pursue law school.
She said, “I am just beyond honored that I was accepted into this most competitive and prestigious of all political internships."
FIFTH ANNUAL FAMILY FUN PICNIC
Red white and blue predominated at the fifth annual ERC Family Fun Picnic held at Patterson Park on Lake St. Clair in Grosse Pointe Park on June 24, 2007.
Peggy and Mike Hennigan cooked the hot dogs, and members and their guests enjoyed sampling a variety of homemade picnic dishes. A big hit with everyone, especially the children, was “Tom the Magician,” a self-described prestidigitator par excellence.
CALENDAR OF EVENTS
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September 10
13th District Republican Meeting
6:30 p.m. - YWCA of Detroit
1411 E. Jefferson
Speaker: Chuck Yob - GOP
National Committeeman
September 18
Eastside Republican Club Meeting
7:30 p.m. - Grosse Pointe War Memorial
Speaker: Larry Reed - Pres. of Mackinac Center.
Topic: Principled Leadership For Fixing Michigan
September 21-23
Mackinac Republican Leadership Conference
Grand Hotel - Mackinac Island
October 8
13th District Republican Meeting
6:30 p.m. - YWCA of Detroit
1411 E. Jefferson
October 16
Eastside Republican Club Meeting
7:30 p.m. - Grosse Pointe War Memorial
Speaker: Scott Romney - MSU Board of Trustees
Topic: Mitt Romney for President
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November 6
VOTE!!!
November 9 - 10
Republican State Committee Meeting
Lansing, Michigan
November 12
13th District Republican Meeting
6:30 p.m. - YWCA of Detroit
1411 E. Jefferson
November 20
Eastside Republican Club Meeting
7:30 p.m. - Grosse Pointe War Memorial
Speaker: Edward Gaffney, State Representative
Topic: Annual Lansing Report
December?
13th - 14th District Christmas Party
Date To Be Announced
4:00-7:00 p.m.
HAVE A WONDERFUL HOLIDAY
Opinions expressed in the ERC Review are those of the writers and do not necessarily reflect the official position of the Eastside Republican Club.
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THE EASTSIDE REPUBLICAN CLUB
Post Office Box 361025
Grosse Pointe Farms, Michigan 48236
Julie Corbett, Chairman
Tom McCleary, Vice Chairman
Linda Solterisch, Secretary
Jim Miller, Treasurer
Mike Gallaway, Director
Walter Koppy, Director
Jenny Nolan, Director
>>More about ERC events held at the Grosse Pointe War Memorial
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